Advance construction is a cash management tool that allows states to begin federal aid transportation projects with their own funds before they actually apportion federal funds or have sufficient obligation authority for federal funds. With this tool, states can later convert an advance construction project to a federal aid project when sufficient federal funds and obligation authority become available. The advanced construction authority allows a state to begin the project sooner, expedite construction and improve cash flow. As of 2000, 47 states had $19.6 billion in advance construction projects under agreement with FHWA.43